October 3, 2023

Crypto Industry Lost around $700 Mln in Q3

Crypto losses

Crypto losses

A recent quarterly report from CertiK, a blockchain security firm, revealed the third quarter of 2023 incurred the highest financial losses of the year, with almost $700 million in digital assets lost due to various security incidents.

The report revealed 184 security incidents in July, August, and September of 2023, resulting in over $699 million in losses, surpassing the first and second-quarter losses of $320 million and $313 million, respectively.

Private key compromises were identified as the most damaging exploit, causing over $204 million in losses across 14 incidents. The report also highlighted a significant loss in the Multichain incident, where the CEO’s exclusive control of private keys led to a loss of $125 million.
The incident underlined the vulnerability of centralizing private key control for businesses, ultimately leading to a cessation of operations for Multichain.

In the last quarter, there were a number of issues affecting the crypto industry. These included exit scams, oracle manipulation, and private key exploits. According to a recent report, 93 incidents of exit scams resulted in a loss of over $55 million in digital assets.

In addition, 38 cases of oracle manipulation led to a loss of more than $16 million in cryptocurrency. In September 2023, the biggest crypto exploit occurred due to the cross-chain protocol Mixin Network. This exploit resulted in suspending all withdrawals and deposits from the network. The company later confirmed that $200 million worth of digital assets were drained from its mainnet.

The report also noted that North Korea’s state-affiliated hacking group Lazarus continued to be a major threat actor in the third quarter. The group was responsible for at least $291 million in confirmed losses in 2023.

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